summarize what Drucker believes to be the function of profitsand (b) explain how
ID: 361934 • Letter: S
Question
summarize what Drucker believes to be the function of profitsand (b) explain how Thiel’s arguments in Chapter 11 about salesmanship contrast and compare—in the context of the Amazon story —with Drucker’s idea about “marketing.”
Peter Thiel Chapter 11
In Silicon Valley, people are skeptical about advertising. They shouldn’t be. Advertising works on everybody, and if you don’t acknowledge it, you’re deceiving yourself. Advertising is not necessarily the obvious sales you see on TV to buy a product right now. As a matter of fact, sales work best when it is hidden. Consider people that sell companies, they are called Investment Bankers, while people that sell themselves are called Politicians.
Start-up companies should resist the temptation to compete with conventional companies for elaborate PR-stunt. Instead, they should focus on viral marketing that can lead to exponential growth.
Explanation / Answer
According to Drucker profit was never the motive of business. He argues that there are no evidence that support the fact that making profit is the main motive of business. He believes that consumers should be the prime focus and purpose of business. In fact he argues that serving it's customers is the first and foremost responsibility of any business rather than making profits.
However, both Drucker and Peter Thiel agree on one point that customer is foundation of any business and is therefore important to keep the business in existence. Customers are the one who gives employment. Consumers are the wealth-producing resources to the business enterprise and it is the duity of enterprise to produce what customer demand for.
Both agree on that profit is essential to support innovation and marketing actions. Both believe that if one have produced something new and have no way to sell it, its worthless. Therefore, salesmanship holds different importance.
The product becomes viral if it encourages users to make others users it. Therefore, sales is important concept and so is the concept of salesmanship.
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